Dow AgroSciences LLC purchases agrichemical unit from Rohm and Haas

,
James Houx, technical editor

On March 8, 2001, Dow AgroSciences LLC announced plans to
purchase the agricultural-chemical business unit of Rohm and Haas. The deal,
worth nearly $1 billion, will result in the transfer of ownership of some of
Rohm and Haas’ manufacturing facilities in South America, Europe, China and
the United States. Also, Dow Agrosciences will acquire Rohm and Haas’
fungicide, insecticide and herbicide product lines. The deal will also include
some specialty products, trademarks and biotechnology assets. Last year, sales
in the agricultural unit contributed $531 million to Rohm and Haas revenue. With
the new unit, Dow Agrosicences expect sales to approach $3 billion
annually.

The acquisition is expected to enhance Dow AgroSciences’
position in the agrichemicals market by adding several well-known brand names to
their worldwide turf and ornamental markets. Although the agrichemicals unit has
performed well and contributed to the company for 70 years, Rohm and Haas feels
that its agricultural unit will be better situated as part of a large, worldwide
agricultural company.

This acquisition continues the trend of operating agrichemical
businesses separately from other chemical units. The agrichemical company, Dow
AgroSciences LLC, is now operated separately from the Dow Chemical Company. In
November 2000 the agrichemical businesses of Zeneca and Novartis were spun off
in the creation of Syngenta. Now, Rohm and Haas, a producer whose technology is
found in plastics, paints, coatings, adhesives, computers, electronics and
construction materials, is divesting its interest in the agrichemicals
business.